I am currently a trustee for my grandma who lives in a nursing home and has dementia (she can no longer make decisions for herself anymore.) I had a property manager that managed her house in CA that didn't do an ideal job. He didnt have the tenants paying any of the utilities (utilities were over $350 dollars, didnt keep the house fully occupied, and took ab insane fee every month.) I let him go recently and took over so I could save money and get my grandma's nursing home rent bills caught up. My family told me to sell the house to pay the bills, but it was in terrible condition and would have had to sell for less than market value. I talked to a real estate agent friend of mine who got me an offer for $450k from an investor group but she also recommended another option. She said I should get a loan and we do the rennovations that an investor would have, then sell for full market value or rent it out after it was done. So I decided to get the loan.
It was a 12 month, interest only loan for $200k at 9% interest. (I know it is high interest, but I myself can't qualify for a normal bank loan so I did a private loan.) When I went into this my goal was to just get grandma's bills caught up & fix/sell her house to do so. Money was used as follows: $110k to pay off the mortgage my grandma had taken out on the house $15k to catch her up on Bill's $75k for the remodel
Now we are almost done with the remodel and I need to figure out whether to sell or rent the house out. My real estate agent says I should sell because the market is going to get bad and she doesnt know when it will come back up. She says after rennovations the house could sell for $595k-$610k. If I rent it could rent for $2900
Now, my grandma has owned the house for 60+ years. She bought it for $30k back in the day and she loved that house so much. Property taxes are only $900 a year. I myself have a hard time with the idea of getting rid of it for sentimental reasons.
My mom (who lives in a convalescent hospital) will inherit it when my grandma passes and she won't ever be able to live in it due to her medical needs. She also receives public benefits so her inheritance will go into a special needs trust for her lifetime.
I'd like to keep the house in the trust till it HAS to be sold, but in order to do so I would have to refinance the loan at another not ideal interest rate (probably a high 6%) and rent it out. I just don't know if it would make sense to do that vs sell it and invest the money from it into other things? Also the loan would have to be in my name (or so I'm told) and it is a lot of stress to think there's a loan in my name that will last for the next possibly 30 years of my life for something that isn't even mine but belongs to the trust I manage.
I apologize if this is not the right place for this post. Was also considering posting in a estate planning sub. Thanks for reading and any advice you may have.
Edit: a word
Submitted January 12, 2019 at 01:51AM by mogimochi http://bit.ly/2Fsmfen
